Question: 1. Consider the following production function: Y = F1K, L2 = A12K + 3L2. Does this pro- duction function exhibit constant returns to scale? (Hint:

1. Consider the following production function:

Y = F1K, L2 = A12K + 3L2. Does this pro-

duction function exhibit constant returns to

scale? (Hint: Replace K and L by 2K and 2L,

respectively, and check if F(2K, 2L) = 2F(K, L).)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Problem 2: Decision Tree, post-pruning and cost complexity parameter using sklearn 0.22 [10 points, Peer Review] We will use a pre-processed natural language dataset in the CSV file "spamdata.csv" to...

Q:

Consider the following production function: Y = F(K,L)=A(2K+3L) Does this production function exhibit constant returns to scale? (Hint: Replace K and L by 2K and 2L, respectively, and check if...

Q:

Consider the following production function where L is labor and K is capital: y = f ( L , K ) = L 1 / 2 K 1 / 3 . 1 . Does this function exhibit increasing, constant, or decreasing returns to scale?...

Q:

I. Which of the following is correct? a) The pivot of the budget line shows the substitution effect while a slope gives the income effect. b) The pivot of the budget line shows the substitution...

Q:

all questions... MIDTERM EXAMINATION #2 Instructions: This is a closed book and closed notes exam. You may use a calculator if you wish. However, no calculator is needed to answer the questions....

Q:

00Intermediate macro Question 3 Consider an economy with 2 factors of production, labor and capital, and 2 produced consump- tion goods, food (goodl) and electricity (good 2). The production...

Q:

Assist with my work... Question 3 Consider an economy with 2 factors of production, labor and capital, and 2 produced consump- tion goods, food (goodl) and electricity (good 2). The production...

Q:

Kindly slove these questions clearly showing your workings A firm uses labor and machines to produce output according to the production function: f(L,K) = 4L(1/2)K^(1/2), where L is the number of...

Q:

Financial crisis analysis. Find a current (within the last year) article on a company that has been faced with a significant financial crisis or challenge. It could be downsizing, starting up,...

Q:

QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...

Q:

answers shd be only handwritten Hassan and Dana had bought a property valued at $1,225,000 for 20% down and a mortgage amortized over 25 years on March 1, 2018. They made equal end-of-month payments...

Q:

Who is eligible to participate in a self-employed or small business retirement plan? Would a public school teacher who moonlights as a photographer qualify for a SEP-IRA?

Q:

We obtain local maximum at x = a when the function changes its behaviour from increasing to deccreasing to left and right of x = a respectively O True False

Q:

Evaluate the integral. 0 3 ( 6 6 y - y 2 ) d y

Q:

The following accounts are denominated in pesos as of December 31, 2013. For reporting purposes, these amounts need to be stated in U.S. dollars. For each balance, indicate the exchange rate that...

Q:

Peru Industries began operations on January 1, 2014. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts...

Q:

On January 1, Dandu Corporation started a subsidiary in a foreign country. On April 1, the subsidiary purchased inventory at a cost of 120,000 local currency units (LCU). One-fourth of this inventory...

Q:

The Finnerty Furniture Company, a manufacturer and wholesaler of high-quality home furnishings, has experienced low profitability in recent years. As a result, the board of directors has replaced the...

Q:

On December 31, 2014, Toro Company's Allowance for Doubtful Accounts had an unadjusted credit balance of $31,000. The accountant for Toro has prepared a schedule of the December 31, 2014, accounts...

Q:

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

Q:

2. In this chapter, the reader should reflect on the following concepts: Differences, relationships, processes, patterns, contexts, symmetrical rela-tionships, complementary relationships, linear...

Q:

1. Discuss the following statement: Everything is seen, heard and said by a subject, and accordingly is subjective.

Q:

1. This chapter is designed to give the reader an understanding of how the way a problem is framed is crucial for how it is perceived, both by the recipient of a message and the person who wants to...